Bitcoin, Ethereum and more: what will be the trend for the cryptocurrency market by the end of 2022?

This 2022 will be a difficult year for investors in cryptocurrencies. After a historic recovery amid the start of the pandemic and record highs in 2021, these past few months have been characterized by a gradual decline. It was not only inflation that was shocking, but also the many scams or disputes that led to the value of currencies such as bitcoin and ethereum to free fall.

However, August and September managed to calm the outlook for the last cycle of the year. Are we in the trend of the world? Or is it the calm before the storm?

Ethereum and its landscape-changing ‘merger’

The main change that is currently being seen in the crypto market is ethereum, second largest coin after bitcoin.

Last week, the long-awaited “Merge” update arrived on the currency blockchain, moving from the so-called Proof of Work (PoW), which required computer farms to mine rewards, to the so-called Proof of Stake. (PoS), where transactions are verified in other currencies, which is a kind of return on investment.

“The merger represents a proposal that has not been successfully implemented in the crypto world. It aims to give a different approach to the network ethereum more sustainable, more efficient, and that can drive the price up or down,” says Carlos Bernos, Country Manager for Peru Buddha.com.

However, the giant step in terms of energy savings was not well received by the market, which led to a drop in the cost of Ether. Cause? The United States has spoken out and indicated that now the currency does not behave as such, but rather like a stock.

This was stated by the President of the Securities and Exchange Commission (SEC) Gary Gensler. ethereum they can now invest and reap long-term benefits, as well as get loans with their technology. For this behavior ethereum would no longer be perceived as cryptocurrencybut as an actionsafety), which ensures profitability. Now companies that can offer loans must pass new legislation and must be officially registered, which is contrary to many postulates that have accompanied cryptocurrency since its inception.

The impact was strong. CoinMarketCap illustrates us: ethereum A week ago, it was averaging $1,700 to $1,300. Movement pulls everything else, including the company itself. bitcoin, which is now back below $20k.

Will this change cause the market to fall further? “It is difficult to make short-term forecasts. What we have seen in these types of price valleys is that participants are using them to advance technology, adoption and the ecosystem,” said Matias Romero, Exchange Regional Manager. good bit. “We are in the process of moving the consensus mechanism from ethereum — the second largest blockchain in the world — from Proof of Work to Proof of Stake, increasing efficiency, reducing power consumption and laying the foundation for scalability.”

Consolidation stage?

But, leaving aside the opportunistic ethereum, The market has been generally calm over the past few months, with no major upheavals after scandals like Luna or Celsius. Does this give reason to think about the recovery stage?

“What has always happened is a bull market followed by a bear market later on. Markets are cyclical: I expect there will be about three or four stages of accumulation, similar to what happened in the last 2 or 3 months, without significant price fluctuations,” says Bernos.

The specialist expands his thought, stating that “we do not have a moment of recovery in the price level” compared to periods such as 2021, for example.

“Today there was no market event that could blow up the price and cause a demand bailout. It is also difficult to find an event of this kind, especially since the macroeconomic context was more complex. Investors need to prioritize their money or what they want to bet on. This year the reality is different: the inflation rate is higher and events like Celsius or Terra Moon have affected confidence.”

“We hope that the adoption and use cryptocurrencies it will continue to grow and Latham will become one of the markets that regional and global players are paying more attention to,” says Romero.

And the Peruvians, what can we expect?

Executive Director good bit tells us a number of important data about the acceptance cryptocurrencies in Peru.

“Today, more than 1.2 million Peruvians already have some cryptocurrency, according to signature Triple A. The country ranks 22 out of 154 in the world and fourth in Latin America in terms of cryptocurrency adoption (chain analysis). And, according to Sherlock Communications12% of those surveyed by this company are sure they will buy cryptocurrencies this year. In previous surveys, this figure was hardly 1%,” he says.

In the same way, he anticipates the emergence of a “loan product in nuPEN”, stablecoin which follows the Peruvian salt. “Users will be able to access loans at very competitive rates in seconds by leaving DAI, stablecoin which follows the US dollar as collateral. These loans are not extremely flexible. They have no minimum payments, payment schedule or penalties.”

Bernos analyzes our territory and mentions that in Buddha, the behavior of Peruvians towards digital currencies is one of constant accumulation.

“I was going through the inside information that we have in Buddha and we compare last year and, for example, what happened at least in Peru last year, in November, when there was this new all-time high, is that people started selling their cryptocurrencies: selling exceeded buying. What is happening now, rather, is that there are not many crypto liquidations, except for those who do it day in and day out, but the average person goes through a moment of accumulation.

Similarly, he mentions that there is no work done at the level of education in the field of cryptocurrency, and on the other hand, he mentions that the country still does not have a regulatory framework that defines this type of business.

“Here in Peru, there were projects, but there was no regulation related to platforms cryptocurrencies. There is a bill in Congress, introduced earlier in the year, that has yet to be passed. Of course, it is known that at the level of Peru exchange cryptocurrencies they will be obligated entities to the Financial Intelligence Unit. At the level of prevention of money laundering, there is nothing yet, and it is likely that it will begin there, and at the tax level there is also no statement on how to handle the profits of individuals received from buying and selling. cryptocurrencies”ends.

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